VFW to Senate: Stop Predatory Schools From Stealing G.I. Bill Benefits

VFW Deputy Legislative Director Ryan Gallucci testified yesterday before the Senate Homeland Security and Government Affairs Subcommittee on Federal Financial Management, discussing issues veterans have faced when predatory schools seek to exploit them for federal G.I. Bill dollars. To view full video of the hearing, click here.

The subcommittee decided to host the hearing in light of recent data suggesting that predatory schools -- particularly predatory for-profit schools -- have reaped significant financial benefits from the new G.I. Bill, while student-veterans have walked away empty-handed.

"When schools prey on veterans, they quite literally steal their benefits," said Gallucci. "The VFW expects schools to be able to deliver degrees or certificates with which veterans can find jobs. If a school's business model ensures that veterans cannot receive such credentials, the school should not receive further federal funding."

The VFW's National Legislative Service has been tracking the issue for the last couple of months, trying to identify the causes of the problem. What the VFW discovered was a fractured higher education system that could not provide proper oversight of both the G.I. Bill and military tuition assistance, and convoluted and unenforceable standards of conduct for schools that receive federal funding.

The VFW recommended that Congress look at four specific causes of the problem: The contradictory 90/10 and 85/15 policies that cap federal sources of revenue for schools, a veteran population that does not have access to proper information to make an informed decision, VA administration that only verifies benefit-eligibility based on military service, and State Approving Agencies that are overworked and improperly resourced to serve as the gate-keepers for education compliance.

To read more about VFW's concerns, download the official testimony by clicking here.

To solve these issues, VFW first recommended that the Department of Education must ensure that federal funding caps for schools are clear and enforceable, meaning that 90/10 and 85/15 should no longer cap Department of Education and VA education funds separately.

VFW also recommended revisiting the funding models for State Approving Agencies, which have received the same mandatory funding rates since 2006, even though the Post-9/11 G.I. Bill dramatically increased their workload in 2009.

VFW also suggested that VA should consider adopting memorandums of understanding, or MOUs, for schools that wish to be eligible for G.I. Bill funds, and allow VA to determine veterans' eligibility for programs prior to enrollment.

MOUs could build on the model currently used by Department of Defense, ensuring transparency for veterans, and determining eligibility prior to enrollment could help ensure that veterans do not rack up bills for programs for which they do not qualify to receive benefits.

The VFW clarified that the hearing was not an indictment of the for-profit education community, but of bad actors who chose to prey on veterans. During the question-and-answer, Gallucci pointed to some of the positive efforts of for-profits, such as the University of Phoenix, which recently instituted a free 21-day orientation for new students and includes a "life factors" assessment for potential students on its website. Gallucci went on to acknowledge that he had failed Phoenix's online assessment due to time available to study and unclear reasons for pursuing an additional degree.

VFW leaders say that this hearing was just the first step in ensuring that G.I. Bill dollars are used effectively. Staff have already continued their conversations with major stake-holders across the industry, including both for-profit and non-profit schools that want to make a difference.

"In recent months, discussions over fiscal responsibility have us concerned about the continued viability of the new G.I. Bill, should veterans not receive the educational opportunities they were promised," said Gallucci. "Our veterans have earned these benefits, and it is our duty to ensure that predatory companies cannot exploit them."

As the discussion on this issue moves forward in Congress, your VFW will keep you posted on this blog of developments. Check back regularly for updates.

(Photo: VFW Deputy Legislative Director Ryan Gallucci, second from the left, prepares to testify before the Senate subcommittee on predatory schools and the G.I. Bill. Photo by Ray Kelley.)